Australia's wheat exports face challenges

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australia's wheat exports face challenges

2016-01-21 09:52 |
source: China Grain Network |

CANBERRA, Jan 20: Australia's CBH Group highlights the challenges Australia faces in the international wheat export market. In fact, we face stiff competition from Canada, the United States, Argentina and Ukraine, said Andrew Crane, CEO of the company. The cost of growing wheat in these countries is 10 Australian dollars/ton lower than in Australia, and they have better rainfall, soil and yields.

CBH Group said that in the market year to September 2015, CHB Group's revenue fell 45% to about A $82.7 million and revenue fell 5.5 percent to A $3.72 million. CBH Group's grain processing volume was 13.6 million tons, a decrease of 2.3 million tons year-on-year, as grain production in Western Australia was reduced, while CBH Group's sales and trading business lost A $16.7 million due to the weak grain market and fierce competition.

CBH Group said the dollar-denominated commodity market experienced its worst decline since the global financial crisis, resulting in losses in a number of sales and trading businesses.

The increased competitiveness of regions such as Europe and Russia in the Middle East and Asian markets has made Australia's situation even more difficult. Wheat production in these regions is at an all-time high, coupled with low ocean freight, allowing their wheat business to expand into the traditional export market of Australian wheat.